A controversial bill proposal to privatize Israel’s Public Broadcasting Corporation, KAN, will not advance, Knesset Economic Affairs Committee chairman MK David Bitan (Likud) announced at a committee meeting.
Bitan’s announcement was notable, as it marks a political and ideological rupture within Likud, home of Communications Minister Shlomo Karhi, who has consistently attempted to weaken KAN since taking office in late 2022.
Karhi threatened soon after in a post on X/Twitter that he would attempt to form a subcommittee to promote the law and, thus, bypass Bitan.
Bitan also announced that a second controversial bill being promoted by Karhi that would increase government involvement in the television rating measurement mechanism would only advance if it underwent a series of amendments.
Members of the opposition pointed out during Tuesday’s discussion that Israel’s advertising market was too small to make another commercial news outlet worthwhile. Privatization would thus de facto lead to the complete closure of KAN’s news branch, they argued.
The opposition was quick to take credit for the announcement that the legislation to privatize KAN would not advance.
Opposition leader MK Yair Lapid wrote on X, “A month ago, Minister Shlomo Karhi attempted to disrupt a conference we held to fight against his delusional legislative initiatives. We promised that we could continue to fight, and I told him there that he would not win. Today, he was defeated again; we will not enable them to dismantle Israeli democracy.”
In December, Karhi presented a plan to the Economic Affairs Committee, according to which KAN’s news section would be privatized while its original content section would remain state-funded. In more detail, regarding television assets, Karhi proposed that KAN’s television news branch will be shut down completely, as will its Arabic news and content channel, 33. However, KAN’s educational television channel will remain.
Regarding radio assets, the proposal was that KAN’s main news radio station, KAN Reshet Bet, would be privatized, while its non-Hebrew radio stations, in Arabic, Russian, and Amharic, would remain.
In addition, Karhi proposed to cut KAN’s state budget from NIS 800 million to NIS 500 million, much of which will go toward cultural content on its main television channel. Finally, workers who will be affected by the move will receive “respectable pension conditions.”
Curran's letter
Ahead of the December meeting, the chairman of the European Broadcasting Union, Noel Curran, wrote a letter to Bitan expressing “deep concern regarding the proposed legislation to privatize Israel’s public service broadcaster or reduce its budget.”
Curran added that “such a move would not only jeopardize Israel’s media landscape but could also have significant ramifications for the country’s democratic foundations and international reputation” and indicated it would, with near certainty, lead to KAN’s expulsion from the EBU.
This could negatively affect Israel’s ability to enjoy rights awarded to members of the EBU, such as participation in the annual Eurovision Song Contest and free broadcasting of major sporting events, Curran wrote.
During the December meeting, the president of the Israel Press Council, former Supreme Court justice Hanan Melcer, sharply criticized Karhi’s initiative. Melcer argued that the disproportionate cut to KAN’s news outlets indicated that the initiative’s real intention was to stifle critical free speech.
Karhi countered that there was no reason to maintain a public news program since there was competition in the market, and market forces should determine KAN’s share.
Contrary to the news, there was no competitive market for original cultural Israeli content, and therefore, the state should continue to support it, Karhi argued.